To reach a two-digit GDP growth target, Vietnam must empower its private sector through institutional reform and secure energy buffers. Transitioning from scale to quality ensures that growth translates into real income and better living standards for all, according to Nguyen Van Phuc, former National Assembly Deputy and former Vice Chair of the National Assembly’s Economics Committee.

Here is the second part of the interview with Nguyen Van Phuc:

Fuel prices have shown strong volatility recently, while interest rates are also under pressure to go up. In that context, what challenges does the economy face in pursuing high growth while maintaining macroeconomic stability?

I believe that, in terms of energy strategy, it is necessary to reassess the two existing oil refineries within the overall national strategy, in connection with building a petroleum reserve system. Also, consideration should be given to establishing a Ministry of Energy to enhance coordination and management capacity in this sector.

Fluctuations such as rising fuel prices or interest rate pressures are unavoidable for an open economy like Vietnam, as we are directly affected by developments in international markets.

When input costs increase, businesses face greater pressure, profit margins may shrink, and people feel the impact through higher daily living costs. 

In such conditions, the role of macroeconomic stability becomes even more important, as it serves as a “pillar” that helps businesses and people maintain confidence and continue long-term plans.

However, for a strategic commodity like fuel, being more proactive about supply, particularly through building sufficiently large petroleum reserves, can significantly reduce the economy’s sensitivity to external shocks.

With such a “buffer,” fluctuations in global prices will no longer be transmitted directly and immediately into domestic costs, thereby creating greater room for policy management and maintaining macroeconomic stability.

The Party General Secretary emphasized the efficient use of resources, avoiding dispersion and waste. However, in reality, the private sector has not yet become the main destination for capital flows. How should this be viewed?

The private economic sector is identified as one of the most important drivers of the economy, and in practice, it has great potential in terms of investment, innovation, and market adaptability.

However, in 2025, private sector investment grew by only about 8.4 percent, lower than the state and FDI sectors, indicating that there remains significant room to unlock resources in this area.

Many businesses today do not lack capital but lack the confidence to pursue long-term strategies. Only when the institutional environment becomes more transparent, stable, and predictable can the private sector fully realize its role not only in investment but also in production, exports, and consumption.

What businesses expect is not just opportunity, but also a clear legal environment that is stable and consistently enforced, enabling them to anticipate risks and plan for the long term.

In this context, limiting the criminalization of economic–civil relations, reducing direct administrative intervention in business operations, and continuing to cut unnecessary business conditions will contribute significantly to building a safer and more business-friendly environment.

Unlocking the private sector, therefore, is not just about one economic segment, but about improving the efficiency of resource allocation across the entire economy, thereby creating stronger and more sustainable growth momentum.

One key principle is that growth must improve people’s living standards. In your view, how should this be realized in the current context so that people can clearly feel the benefits of development?

Growth is only truly meaningful when it is translated into income, jobs, and quality of life for people, as these factors directly reflect how society benefits from economic development. If so, people are not only beneficiaries but also become an important driver of growth.

Therefore, alongside macro indicators such as GDP, greater attention should be paid to indicators reflecting real income, living standards, and social welfare, to ensure that growth reaches every citizen.

Aligning the growth model with improvements in people’s quality of life is an urgent requirement to strengthen social consensus and build a solid foundation for sustainable development.

What is the key to double-digit growth in the coming period?

In my view, the most important factor is reform, as it is the key to translating development aspirations into concrete results.

Institutional reform, infrastructure reform, and human resource reform, based on science and technology, innovation, digital transformation, and artificial intelligence, will be decisive in unlocking the economy’s internal strength.

In this process, the role of the State is shifting strongly toward that of a development enabler, game rule designer and ensuring market discipline, thereby creating a favorable environment for all economic sectors to grow together.

Lan Anh